Dissertation - The importance of ethics and compliance within Hong Kong financial institutions/industry

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Abstract

The ethics and compliance of the financial institutions around the world have grown rapidly in the last few years in response to the financial crisis in 2008. Institutions have made unprecedented investments in the areas of ethics and compliance, launching new rules, regulations, internal policies and guidelines, building risk management systems, and carrying out more comprehensive mandatory training. In addition, the institutions have pursued to develop a perfect system to prevent unethical behaviors, and to formulate strategies for coping with their consequences.

Background to the study:

This research topic is written to give a broad view of ethics and compliance within Hong Kong financial industry. It is one of the hottest issues in recent years and many financial institutions are focusing and putting more insights into these aspects. Following to the global financial crisis occurred in late 2008, it is necessary for those financial institutions to put more efforts and to pay more attention to this issue. Since the crisis induced by lot of factors, the personal integrity of salesperson is one of the issues leading to this happen. However, it is time to conduct and reflect the current status and circumstance of ethics and compliance being applied by financial institutions.

Overall Research Aim:

The overall aim of the dissertation is to illustrate and identify the current situation in Hong Kong financial institutions/industry relating to ethics and compliance in order to help the practitioners and the public to acquire a deeper understanding of how this issue is applied in practice through the case studies and questionnaire contained in this dissertation.

Research Objectives:

Upon study of this dissertation, readers should be able to:

- Explain the legal and regulatory framework for the authorization and supervision of authorized financial institutions (AFI) in Hong Kong under banking ordinance (BO) and relevant supervisory guidelines, including approval and/or notification of appointment of certain personnel in AFI.

- Describe the key provisions of the Securities and Futures Ordinance (SFO) relevant to wealth management, including the licensing and registration of AFI and individuals, the regulation and supervision of business conduct, principal offences relating to dealing and activities regulated by the legislation and the sanction for such offences.

- Explain the regulatory requirements relating to the sale of investment products particularly with compliance of suitability obligation.

- Understand and realize through case studies, public survey and practical application of the regulatory requirements and how practitioners are expected to comply with them.

- Understand the importance and significance of compliance with external regulatory requirements and internal policies and procedures, and the possible outcomes and impact of non-compliance.

Attachment:- Dissertation.rar